Yesterday’s session on the EUR/NZD pair was crucial. This is the first clearly bullish session since more than a month of very powerful declines. Interestingly, the rebound that was in the air appears on the technical support of the area of 1.6550 namely at the level of the two previous lows. Judging by previous reflections from this level, the upward movement should take at least a few sessions. The reason for the rebound after sell-off is not the technique but the fundaments. Antipodean currencies weakened yesterday due to the Asia-Pacific Economic Cooperation conference, which did not bring a common position on the subject of trade, which has not happened for many years. It seems that the fate of the rebound can also be decided on Wednesday. It is then that the European Commission is to decide what to do next in Italy, which didn’t yield or made amendments to its budget. If the tension does not escalate and the markets do not react specifically to possible procedures of the commissioners, it seems that the rebound to EUR/NZD has a chance to continue.
